Price Gains Lead To Affordability Dip In Second Quarter

Nearly 74 percent of all new and existing homes sold during the second quarter of this year were affordable to a family earning the national median income of $65,000, according to the National Association of Home Builders Housing Opportunity Index. But though that’s high by historical standards, it’s down from a record 77.5 percent of homes during the first quarter. Barry Rutenberg, NAHB’s chairman, said the decline in affordability is a positive development because it’s another signal that the housing recovery is taking root, which should lend confidence to buyers and sellers in the current market. In 92 percent of the metros covered by the index, prices were up from the first quarter of this year. The most affordable major housing markets during the second quarter included Youngstown and Dayton, Ohio; Buffalo, N.Y.; Indianapolis, Ind.; and Modesto, Calif. More here and here.

Filed under: Housing Market, affordability, business, buyers and sellers, Chicago, current market, dayton ohio, economy, Housing Market, Illinois, index prices, Mortgage, nahb, national association of home builders, national median income, opportunity index, Real Estate, rutenberg, taking root, The Federal Savings Bank, transportation, youngstown